This simple forex strategy is made up of only two indicators: VolcanoWMA signals and Keltner Channnels which look similar to Bollinger Bands.
The Keltner indicator is primarily used to determine our take profit and stop-loss levels, so there’s nothing to calculate.
It can be applied to all currency pairs and time frame’s above the 30 min.
Indicators: Keltner_Channel, VOLCANOWMA
Time frame(s): 30 Min and above
Trading sessions: All
Currency pairs: All
EUR/USD 1 Hour Chart Example
- VOLCANOWMA Up Arrow (Green)
- Set Stop Loss at the lower Keltner Channel band
- Take profit at the upper Keltner Channel band
The EUR/USD hourly chart above generated three trading signals. Two profitable sell entry signals at respectively 1.9595 and 1.2858 and one open buy trade at 1.3057 with stop-loss placed at the lower band ( 1.2976).
- VOLCANOWMA Down Arrow (Red)
- Set Stop Loss at the upper Keltner Channel band
- Take profit at the lower Keltner Channel band